Contract Represents Fourth Order from International Law Enforcement Agency in Past Six Months Company Reiterates $40 Million Revenue Guidance for 2008

OVERLAND PARK, Kansas — Digital Ally, Inc. (Nasdaq: DGLY), which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, today announced that it has received a fourth order from an international law enforcement agency. The order for approximately 1,000 DVM-500 In-Car Digital Video Rearview Mirror Systems is expected to ship in the second quarter of 2008.

“We received our initial order for DVM-500 systems from this international law enforcement agency in late November 2007, and upon completion of this fourth order, Digital Ally will have shipped over 2,800 DVM-500s to the customer,” noted Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “An expanding number of countries have been testing our DVM-500 systems, and we are very pleased that the quality, dependability and user-friendly aspects of the product have led this law enforcement agency to re-order multiple times in order to expand its deployment of the systems in the field.”

The Company also reiterated its previous guidance that its revenue for the year ending December 31, 2008 is expected to increase more than 100% to approximately $40 million, when compared with 2007 revenue of $19.4 million.